>> -- this is the "journal." welcome. >> european leaders at loggerheads over the new budget. >> credit unit -- a general strike in tunisia as anger grows over the assassination of one of the nation's boldest critics. >> an unsettling report outlining doping across sports. the battle of the budget in brussels in shaping up to be very much a north/south confrontation with europe's rich northern countries calling for a further deep spending cuts. >> but in the south, countries like greece and spain say four years of austerity are enough. they are calling for spending to be eased to spur growth and create jobs. >> after it failed budget summit
in november, stakes are high this time around for some kind of deal. >> british prime minister david cameron wants the eu to mend what he sees as its wasteful ways. he made his point by arriving on foot, not in a chauffeur-driven limousine. he went into the talks in a bullish mood. >> the numbers that were put forward were much too high. they need to come down, and if they do not, a to be a done deal. >> that puts him on a collision course with many other eu leaders who argue the block needs a $1 trillion budget to fight unemployment, fund education and training and invest in the future. >> i of europe goes for compromise at any cost and puts common policies, agriculture, and growth at risk as a result, i will oppose it. >> with opinions so clearly divided, german chancellor
angela merkel was keen to play down the differences and talk up the prospects of reaching agreement. >> the starting positions are quite far apart. but speaking for germany, i say we will do everything we can to come to an agreement. because in times of uncertainty and high unemployment, it is essential for people to be able to plan their future. >> it is about politics, not just numbers. the trick will be to find a deal that allows each of the 27 national leaders to claim victory when they return home, and members of the european parliament have warned that if the budget makes too many cuts, they may veto the whole package. >> will there be a deal this time around? for more on the budget summit, let's go now live to brussels and our correspondent. the start of this conference has been put off. what is happening? >> let's be clear. the official start of the conference has been put off, but
really, there has been tough bargaining going on behind the scenes since this afternoon. especially great britain seems to be a tough nut to crack, and there does not seem to be a great deal of willingness for compromise that david cameron is showing here, and a meeting between the german chancellor and british prime minister is said to have lasted at least an hour, and now we are hoping for the official start of the summit's any time soon. >> a lot of behind-the-scenes horsetrading going on. there was no deal in november, as we've been reporting. do you think there'll be a deal this time around? >> there are really just two interpretations for this delay -- one is that they have almost reached a deal and that they are just trying now to hammer out the details so that the official part of the conference can last a bit shorter than usual. the other complete opposite interpretation is that they are further away from a deal than what we thought only this afternoon.
really, it will not depend on the willingness for compromise that especially people like david cameron will have to show. >> thanks so very much. >> to nature is a country on the brink once again. trade unions are calling for a general strike on friday. the assassination of opposition leader chokri belaid has many protesting a government they claim is trying to silence critics. >> for now, the tunisian government is digging in. >> the crowds chanted "down with the murderers and down with the islamists." protesters took to the streets in tunis and other cities demanding that the government resign. there has been turmoil on the streets since the killing of secular leader chokri belaid.
police used tear gas on protesters when they came close to the ministry. protesters say the ruling party is behind the assassination of the political leader, gunned down outside his home on wednesday. a senior official said it had not consulted with his party. before the opposition, it was not enough. a spokesman from the popular front party said the government had to go. >> everybody agrees the government has failed. it no longer has a role to play. we demand its resignation and the creation of a new government that will guide the country through a transitional period. >> friday will see belaid's
funeral as well as a general strike called by the country's main trade union. >> what can be done to ease the tensions in tunisia? for more, let's go to our correspondent in tunis. first off, no signs of compromise right now. what happens? >> they have been meeting today, and we are still waiting for a declaration from them. in the meantime, i am at the presidential palace where the spokesman for the president, one of the non religious coalition allies, has just given a press conference. his is the president is meeting now with the prime minister. i'm getting the feeling some of the advisers would like him to come up with a list of new ministers which would then be put to the constituents in accordance with constitutional
procedure. >> there's a lot of political loose ends right now. what about every day to nations? what do the people on the street make of these new developments? >> the atmosphere on the street is not normal, especially around central tunis. restaurants and shops were in lockdown as protesters skirmished with police. the atmosphere is one of suspense. that is why is a feeling that soon after the funeral is over tomorrow morning, the politicians really should come up with some way forward, which will probably be a whole new government, maybe with the prime minister continuing with or without the support of his party. >> thank you so very much for now. iran has dismissed an american proposal for direct talks on its disputed nuclear program. a speech to millet -- in a speech to military commanders, iran's supreme leader rejected
any bilateral talks, saying the u.s. offer was an attempt to improve its poor standing in the region. >> last week at the munich security conference, the u.s. vice-president said washington was open to negotiations. the u.s. has accused tehran of seeking nuclear weapons. iran says its research program is solely for peaceful purposes. we will go to egypt now where leaders of 57 muslim nations have called for serious dialogue between syria's government and the opposition. >> capping off a two-day summit in cairo, the organization of international cooperation urged syrian officials to pave the way for a political transition to put an end to the syrian civil war. the statement comes as the country yet again saw more fierce violence. in europe, the european central bank chief mario draghi says the recent rise in the value of the european currency, the euro, shows markets are indeed confident in the currency's stability. he pledged to keep a close eye
on the economic impact of a strong euro. that pushed the currency slightly lower in trading. >> but he also said he expects the eurozone to return to growth later in 2013 after a weak start to the year. ecb has left eurozone interest rates unchanged at 0.75%. any decision by the ecb, even when to hold interest rates steady, is a sure-fire market mover. here is a report from the frankfurt stock exchange. >> the euro dollar exchange rates declined significantly while and after the ecb president spoke at his press conference here in frankfurt. draghi said that the key interest rate for the eurozone remains stable at 0.75%, but he also said one risk for the economy in the eurozone was the appreciation of the euro/dollar exchange rate, meaning it is getting tougher to export goods
and services out of the eurozone if the euro gets too expensive. that is why he underlined several times that the monetary policy stance of the ecb remains accommodative. some investors now are betting on lower interest rates for the eurozone or other monetary policy ideas to keep the euro in check. >> welcome to the raw numbers from the markets today -- the dax finished on a slight gain. euro stocks 50 dropped nearly 0.75%. across the atlantic, the dow is down 5.41%. the euro is down quite a bit, to $1.3395. >> in europe, ireland has structured a deal to restore a chunk of its debt. >> the deal means that the debt took on during the bailout will
be paid back over a much longer time, up to 40 years. this will make it far easier for ireland to bring down its budget deficit. >> german carmaker diamond has reported record sales for 2012, but it did miss its profit target. timeless says profits were 8.6 billion euros, which is below its 2011 results -- daimler says profits were 8.6 billion euros. >> weak demand in europe weighed on the mercedes luxury car division. they did boost the bottom line by selling a stake in the eads and aerospace group. the company also announced measures to increase its presence in china. the german foreign minister is in the philippines on a mission to boost trade ties. berlin has had frosty relations with manila ever since a trade dispute in the 1990's. >> westerwelle said to some to put that behind the two countries and rebuild relations.
germany is manila's biggest trading partner, and strong growth between the two is expected. >> it is the first time in more than a decade that a german foreign minister has paid a visit to the philippines. during talks with his counterpart in manila, the finance minister said they were eager to do more business with the pacific nation. >> the german government aims to further deepen the dynamic economic ties between our two countries through the establishment of an official german philippine chamber of commerce. in our talks, i stated that i am in favor of a free-trade agreement between the european union and the philippines. >> currently, a quarter of the population in the philippines lives in poverty, but the economy is growing fast, and there is an emerging middle class. the government is clamping down on corruption and hopes to lure
more foreign investment, including from germany. >> take a good look. see if you like what we have to offer. please note that the country has been transformed. >> the talks focused on security concerns for german investors. the foreign minister's visit underscores the philippines' growing attractiveness in the booming east asian market. >> the focus is on southeast asia. the region is opening up and brimming with self-confidence. europe does not want to take a backseat. that is why the german foreign minister is thriving on this visit, to revitalize relations. >> some sports now. the british cyclist is on the fifth stage of the tour de qatar. >> he has one -- won hree -- won
three straight stages now. in the overall rankings for the race, cavendish holds a 15- second lead over the u.s. rider. we have to take a quick break now, but when we come back, fans in a trailer and that many of their sporting heroes have been doping. >> lots of organized crime apparently involved in match fixing as well. also in berlin right at this hour, it is opening night at the berlin international film festival. we have it covered for you. stay with us.
in the sports world, including merck the organized-crime members, max fiction, and of course, doping -- match fixing, and of course, doping. >> the likely involvement of criminal gangs. >> it has been called the darkest day in australia's sporting history. as if to underline the seriousness, the findings were unveiled by two government ministers and heads of all the country's major professional sports. >> the findings are shocking, and they will discussed australian sports fans. the work that the of trillion crime commission has done has found the use of prohibited substances, includingeptides, hormes, d ilcit drugs is widespread among some professional athletes. >> perhaps most shocking of all, investigators found substances not even approved for human use and that athletes were aided by sports scientists,
doctors, and pharmacists. organized crime involvement is also suspected. that would have made player's vulnerable to masks -- match fixing. criminal investigations are now under way. >> it is like anything. if you do something bad, it does not matter when, it will come around and get you back. >> there is no place in sports r it sports i sethinghat is really imbedd in australian culture, so i think it needs to be policed vigilantly. as i heard the minister say, they made a very strong statement. >> ministers and officials say they are prepared to do whatever it takes to restore integrity in sport. >> the government has a simple message -- if you want to cheat, we will catch you. if you want to fix a match, we
will catch you. as you can see, by the investigations that have taken place, we are well on the way to seeking out and hunting down those who will dope and cheap. >> the government is promising new powers for doping offials, more resources and money, and new measures to encourage athletes breaking the rules to come clean. >> a bit more from the world of sport -- the countdown has officially begun. it is exactly one year until the winter olympics begin in search, russia. >> the games are seen at least in part as a bit of a personal prestige project for president vladimir putin, who says that everything is running smoothly and that the country will be ready for the games. >> but there has been controversy and accusations of corruption, and the games are also not coming cheap. >> so she is a prestige project for russian president vladimir putin. he wants to show the world russia can pull off an
international sporting festival despite all its problems. -- sochi is a prestige proje. 2/3 of the results are completed. environmentalists say vast swathes of forest have been filled to build the slopes. they say the futuristic venues are a lot on the landscape, but the ioc president disagrees. >> @ i am very impressed with the fact that the site is very compact, high quality, and it is situated in beautiful surroundings. >> has been dogged by allegations of corrupti and mismanagement as well as delays. human rights organizations have accused the administration of forced evacuation of residents, and they say foreign residents have been cheated out of their pay. residents are of two minds. >> we are a bit tired of the mess and dust and cement.
otherwise we like the fact that the city is changing, the infrtructure is improving, and the standard of living is rising. the building affects our lives because the let -- electricity and water often get cut off. >> even before the sochi games begin, they will have broken 1 record -- they are said to be the costliest olympic games of all time. >> are you ready? it is time to roll out the red carpet. theberlina -- the berlinale international film festiva is it to kick off. >> hundreds of mies are said to be shown over the next 11 days, but just ahead of them are the prize for best director, best actor, and best film >> the winners of those prizes will take home those famous golden bears. >> organizers are leaving nothing to chance. everything is in place for the start of the berlin film festival. for the festiva director, there are plenty of new film makers to
get excited about. >> you get the feeling they have dropped everything, left their parents behind and said, "we are going to do everything differently," but they still have a very firm grasp on reality. >> the opening film, "grandmaster," is the work of a veteran of chinese cinema. it is the story of two kung fu masters -- a woman from the north of china and and and from the south. their paths cross on the ease of its -- the eve of the japanese invasion in 1936. as the stars arrive, hollywood reporters, asia bureau chief had this to say about the movie. >> cassette and the grand master -- "the grandmaster" has really interesting sequences, but then again, you can see that there is a lot of talking in it,
a lot of reflection about alienation, about this location, about grief and loss, romances unfulfilled. basically, it is more or less a one car a film. >> another film is about german prospectors who had to canada in search of their fortune. the leading part is played by a regular at the berlin film festival. this french actress plays a starring role in the film "on my way," about a restaurant owner looking to start afresh. the 10 days will showcase over 400 films. it is open to anyone if they can get a ticket. >> for more, let's bring in a man who has surveyed the red carpet for us. more than a few times. we will have him in just a
moment. he will bring us some news about films and competition. pardon me. we all of the glitz and glamour. what kind of festival do we have planned for this year? that is going to be something that -- great. great. here is scott. he is with us now. the glitz and glamour -- it is something we all love, but what is it that brings people to the berlinale? >> a lot of people come for the glitz and glamour obviously. the people tonight behind me came to see the chinese stars of the film cassette in the grand master -- "the grand master," and people who will be crowding the carpet over the next days will come to see stars like matt damon and anne hathaway, but what really attract people and
pass the cinemas is the experimental and politically motivated some of berlin is famous for and that it tends to give all its prices too. from iran, romania, from countries that do not often get the center stage at a big festivals or in multiplex is around the world, but here really have pride of place, and the spotlight really shines on them. i think that is what makes berlin really special. >> so who is favored to win this year? >> it is always difficult to tell before the films have been shown in before you see the reaction, but if i were to put my money on one competition film, i would put it on the iranian film "closed curtain" by a celebrated film maker who was involved in the green revolution and was punished by the government in tehran and is now suffering under a 20-year boycott. he is not allowed to make any movies, but he has defied the government and made this film in
secret and has had it smuggled out of the country, so it will be shown here. it is uncertain weather -- it is uncertain if he will be able to travel. it is already attracting a lot of attention because of the way it is made in the person he is. that, along with his status as a really celebrated our house director worldwide gives him a bit of an edge going into this competition. >> thank you very much. we will be talking again, i'm sure. >> staying in germany, the carnival season got off to a cracking start today and some chilly temperatures as jesters stormed city hall's to kick off the week of parties and parades. >> speaking as a former resident of that area, the spirit can be infectious. everyone is invited to join in, even people who come from far afield. >> south africans did not know what to make of cologne's
carnival when they moved to germany five years ago, but now they love getting dressed up and going to party with their friends. they still remember their first parade. >> all the way from cologne to bonn, using. >> back then, they sang in english, but today, they know all the songs in german as well. he has learned what conable means to cologne. five years ago, he did not have a clue. >> at that they were talking about the carnival in rio or venice because those were the only ones i knew -- i thought they were talking about the carnival in rio or venice. >> in cologne, it means getting together with friends and partying. life would not be the same without it. once they are in the right mood, they head off to another meeting. this one is by and for immigrants.